The US Dollar continues to probe higher against the Japanese Yen having rebounded as expected after forming bullish Morning Star candlestick pattern. Buyers are testing resistance marked by the 38.2% Fibonacci expansion at 102.60, with a daily close above this barrier exposing the 50% level at 103.00. Alternatively, a turn back below the 38.2% Fib at 102.11 targets the bottom of a channel set from early February, now at 101.55.

Risk/reward considerations argue against taking a long position with prices trading so close to relevant resistance. We will remain flat for the time being, waiting for a more attractive setup to present itself.